updated 04:30 pm EDT, Wed April 13, 2005

Apple posts profit

Apple today posted a net profit of $290 million, or $.34 per diluted share for its fiscal 2005 second quarter ending March 26, 2005--with increased revenue of $3.24 billion, which was up 70 percent from the year-ago quarter. The results compare to a net profit of $46 million, or $.06 per diluted share, in the year-ago quarter and by 10 cents per share and ahead of their projected $3.18 billion in revenue. Gross margins were 29.8 percent, up from 27.8 percent in the year-ago quarter. International sales accounted for 40 percent of the quarter's revenue. Apple said it shipped 1,070,000 Macs and 5,311,000 iPods during the quarter, representing a 43 percent increase in CPU units and a 558 percent increase in iPods over the year-ago quarter.

"We are delighted to report a record second quarter for Apple in both revenue and earnings," said Steve Jobs, Apple's CEO. "Apple is firing on all cylinders and we have some incredible new products in the pipeline for the coming year, starting with Mac OS X Tiger later this month."

"We're very pleased to report 70 percent revenue growth and a 530 percent increase in net income," said Peter Oppenheimer, Apple's CFO. "Looking ahead to the third quarter of fiscal 2005, we expect revenue of about $3.25 billion and earnings per diluted share of about $.28."

Wow

Apple posts a profit?

Apple is doomed! Apple is doomed, I say! They can't sustain this! Longhorn is coming (any minute now) and will crush Apple! And there may be, could be, might be, a worm or virus, some day, some time (we don;t know when) that will cause minor damage to Macs! And that means Macs are just as vulnerable as Intel machines!

Citibank Shuffle

Re: stock

Well, let's see: government bond interest rates were up (weeak dollar), the Dow was down 100, and the NASDAQ was down 30. But the real reason is that big investors (who probably got a couple of analysts to say yesterday they were expecting Apple to _miss_ its predictions) always buy just before what they expect to be good quarterly reports, and sell just after. The price starts going down as the wannabes see the sell numbers.

Wait and see if the share price recovers inthe next two or three days.

Re: stock

Then why did the stock go down 4%?

And its down even more in after hours trading!

Its down not for such boring reasons as gurman's "interest rates up, dow down" c***. Its down because that's what it ALWAYS does, the exception to the rule being January, when it actually went up. And I think it went up because Apple shattered estimates. See, Apple beat the estimates by .10 cents, but they probably still came under the 'guess', which is the what they secretly predict and base their purchase prices against. So, externally, Merryl Lynch might say "we estimate they'll come in at 25 cents a share", but internally, they're saying "35 cents, easy", and then buy the stock based on that value. Then Apple comes in at 34 cents, and its "Aiiggh! Sell!" (hey, and keep in mind they're saying .28 for next quarter, which is 6 cents less than today).

Plus, its brokers. Its all a mystical 'science' anyways. A company can release stellar prices, stellar outlook, stellar balance sheet, and their stock can still tank. Go figure. It also doesn't hurt that the brokers are the only ones who can make money on this information, as they're the only ones who can buy/sell before/after hours. By tomorrow, the price will have already settled at its new price, meaning us lowly stockholders have no chance of getting out while the getting's good.

Geez people

"Any long-time watcher of Apple stock knows that whenever there is good news the stock goes down."

How typical of fans to think the world revolves around Apple. This is virtual certainty with any stock.

Posted reply in another thread:
*************
Ever heard of buy on the rumor and sell on the news???

You buy the stock based on observations (long lines at counter), news (company buys X from vendor Y for possible use in Z), and some other public/not-so-public info. The stock rises based on these rumors, expectations, and supply. Months later earning is announced and it is inline with expectations. Sell and take profit.

If you do not know the basics of investing, I suggest you read up. I mean just because I like Boston Chicken and Krispey Kreme and take Vioxx by Merck doesn't mean I will buy any one of their stocks. Lucky for you AAPL has worked out but your next investment may not be so lucky.

Geez, MrKlin

How typical of an arrogant jerk to start typing his response before reading the whole message.

Posted sentence from the rest of the message quoted
****************

Then again, there is the old adage, "buy on rumor, sell on news."

Truth be told, I actually tracked this for a few months a couple years ago. Apple announces great results, even better than expected. Stock drops after hours and the next day. Microsoft announces lackluster results and/or is hit with another virus attack. Stock goes up. Go figure.

Expectations&Profit Takin

AAPL is down in after hours because some actually were hoping to see Apple ship as many as 6 million iPods. 6 million iPods in seasonally worst quarter of the year when sales are usually down significantly from the previous quarter? That in a nutshell is overly high expectations. Those people are (hopefully) being flushed out. Also, people are taking their profits now and run as that the economy is showing signs of slowing down or even stalling. Greed and fear. That's what drives the markets. Greed drove AAPL to almost $45. Fear now is driving it back down towards $40.

Citi

AAPL

As a long term investor in AAPL (I purchased before the Bondi Blue iMac was introduced) I say $crew $40/share do i hear $20 I need to accumulate. $7 Billion cash in the bank, Lord help me but I love this Company, even though I often disagree with some of it's bone headed actions.

My exuberance may be irrational, but it's a wonderful time to be an owner of AAPL.

I did read it

You implied as if only a long-time Apple watcher can deduce the observed pattern (i.e. as if Apple stock is unique and whose behavior deviates from how stocks usually behave).

You then backtrack by saying your original statement may not be correct and finally come up with what should be your original conclusion (sell on the news - which should be blatantly obvious, BTW).

You can help yourself by not posting obvious stupid statements. But I guess you can't help yourself with your latest gem - MSFT stock price is affected by virus?

When has MSFT price ever been affected by virus???? I mean, with the thousands of factors that can influence its price - profit, interest rate, lawsuits,
regulations, dividend etc - and you come up with virus?